May 2008 - Dell Channel Blog

One thing that interests me as I learn about Dell’s channel partners are the different approaches to CFI, or “custom factory integration.” I’m really interested in why a channel partner would use CFI and why they wouldn’t. Living here in the “Mother Ship” I hear the sales pitch -- A Dell channel partner can use the efficiency of the Dell factory to custom order anything, exactly the way they want it, with software already loaded and tested. But I also know that many channel partners are providing customization themselves to their customers. So what is the inflection point here? When is it cost effective to use CFI and when is it more cost effective to do it yourself? Post your answer below. I’m listening.

Dell’s road to becoming a major player in the channel has been, quite frankly, shorter than we imagined. While other companies like HP have been working the channel for 20 years, Dell as a relative newcomer is now being described as the “darling” of the channel by Channel Insider and was recently awarded Products of the Year in the desktop and notebook categories. The blogosphere is also full of rave reviews of products like the new Dell M-Series blades and others.

So how did Dell, a relative newcomer to the channel, suddenly jet to “darling” status? It is actually pretty simple. We asked what channel partners wanted, really listened, and built a program that gives them what they asked for. I don’t want to sound overconfident here -- we certainly have a long way to go – but this isn’t rocket science. It’s the same approach we take developing Dell’s products and services – find out what people want and deliver.

A simplified program along with the kind of “darling” products that everybody wants and re-sellable services sounds easy. But apparently no other company is doing it this way. We’re still listening and still improving, so keep those ideas coming in. Let me know what your experience is and what you’d like to see in Dell PartnerDirect by posting a comment below.

You might have heard that Dell is initiating a Future of Computing tour for Channel Partners starting in June. This special event is intended for those who are currently a Dell channel partner, as well as those that want to learn about the benefits of becoming one.

The Dell PartnerDirect program makes two simple promises: Less complexity, and more value. And this is just what the Future of Computing Tour-Channel (FCT-C) events will deliver. We’ll show how you can profit in new ways to help your customers respond to increasing demands, limited budgets and fewer resources.

Last year when we launched our Simplify IT initiative, we were completing work on a host of key initiatives that change the game in IT. Each of the day-long tour events focus on providing our partners an in-depth understanding of how we are Simplifying IT across the IT infrastructure and include a choice of breakout sessions covering: Virtualization, Data Consolidation & Management, , Systems Management , Power & Cooling, and Mobility. And also learn about Dell’s PartnerDirect program.

Each event also brings along an exhibition room where you can get hands-on time with Dell and partner technology, including the Latitude XT Tablet, new M-Series Blades running 28% more efficient than IBM, virtualization-optimized servers and much more.

For more information or to register for the Chicago event on June 9^th, please visit the FCTC website.

In my role as Channel Community Manager, I’ve enjoyed getting to know the members of our cross-functional team and I look forward to sharing their perspectives with you here on this blog.

First up, I recently talked with Andy Hochhalter from Americas Sales Operations about one of the hottest topics around. Namely, how can channel partners work with Dell without fearing for the livelihood of their own business?

Andy explained that partners are primarily concerned with how Dell will use their end-customer information, and whether it will be used to feed Dell's direct sales activities. To help alleviate these concerns, we created the Deal Registration program. This program allows partners to access preferred pricing for a specific end customer and simultaneously restricts the deal from Dell's direct sales teams for a specific time period.

In addition, there has been a lot of talk about Dell’s internal culture -- with some industry watchers doubting our ability to adapt for the channel. Greg Davis, VP and General Manager of the Americas Channel Group, has made his message very clear to Dell’s direct sales reps: Respect partner deals. He is also actively engaged in resolving any conflicts. It was a learning process initially, but we're now able to focus on fine-tuning our program.

For example, Greg has established a “neutral” compensation program for Dell sales reps. It is designed to remove any motivation not to forge channel partnerships. In addition, we’ve recruited channel veterans who have helped us accelerate the speed in which we can build out a partner program.

In fact, Andy gave me the scoop on how the PartnerDirect program is currently evolving. He stressed that our goal is to be the best in the industry for partners who truly add value to the end customer.  The perfect fit is in niche markets, where our partners bring incremental value beyond what Dell can offer through direct sales. This value-based model will help partners be successful, and give them a way to emphasize the specific benefits for customers. Tangible value for partners and end customers will eliminate fear over time.

I'm so excited to be a part of this revolutionary new program for Dell, and look forward to sharing more thoughts from our team members.

Q: Why choose Dell?

A: Because our Partner Direct program is designed based on partner feedback. Partners like the advantages the direct model can provide—single point of accountability with the manufacturer, custom factory configuration, and delivery options—because it helps increase profitability for them. We also make doing business with Dell easy for our partners with a dedicated partner support, e-commerce and an online partner portal and resource center. Finally, we provide flexible financing options to meet the working capital needs of our partners. All of this direct from Dell to the partner.

Q. You’ve been in this role for eight months now… what can our partners expect over the next eight months?

A: We will continue to listen to our partners and expand our program and benefits based on partner feedback. We are adding a new desktop desktop/remote management capability, powered by Everdream, to our managed services certification path. We expect to expand the program to Mexico this fall. We also plan to add new certification practice areas to PartnerDirect, giving our partners more options to grow both their businesses and their relationship with Dell.

Q: You talk to partners daily. What are they telling you?

A: What I am seeing is that most of the solution providers have really evolved their businesses. They have gone from just reselling hardware to becoming their customers’ IT department. Solution providers now have a different perspective to servicing their customers. As the IT department, solution providers care more about how utilizing Dell can eliminate cost and improve up-time for their customers. Service and support from their vendor is vital. Partners want to simplify IT for their customers, and this is Dell’s value proposition.

Q: Bloggers such as Josh Clifford have questioned Dell’s protection of the channel while building out our direct market. What peace of mind can you offer them?

A: When we launched PartnerDirect on December 5, it included deal registration for our registered partners. Since that time, we have approved over $200M in deals with our partners. Eighty-two percent of the deals submitted by partners through deal registration have been approved. With registered deals, we work very closely with the partner to ensure they own the deal and we collectively win the business for Dell through the partner who invested and brought the deal to us.

Q: HP & IBM have publicly stated that they plan to satisfy their mid-market objective almost uniquely through business partners. Dell already has a direct business that targets the mid-market. Is PartnerDirect targeting the mid-market, and if you are, how are you balancing PartnerDirect's approach against that of Dell's direct SMB/mid-market approach?

A: This is an example of providing the customer choice. We have partners that participate with Dell in SMB/mid-market. Many customers prefer to work with Dell directly, while others prefer to utilize a channel. The best way to balance that is to have an integrated approach with multiple routes-to-market. We want the customer to have choice, and we want them to choose Dell. Having a multi-pronged strategy for doing business with Dell is the best way to achieve this goal.

Q: What do you believe is the biggest competitive advantage VARs get from Dell's Managed Services certification? From Dell’s Enterprise Architecture certification?

A: First, let me state that managed services is a growing trend in the channel, and that Dell is the only Fortune 100 technology company to offer a formal managed services certification path for partners. Since our platform is hosted in a Dell data center and Dell is responsible for its performance and availability, we eliminate many of the costs and risks associated with legacy managed services platforms. In the future, Dell will also deliver MSPs new sources of managed service revenues through MessageOne and other components that will be made available to partners in a “white-box” version they can brand as their own.

In terms of Enterprise Architecture—Ease of doing business and competitive storage products are reasons partners want to certify with Dell. Partners also want to invest in our solutions such as storage, data centers, virtualization, security or power and cooling. PartnerDirect provides enhanced financing options, increased access to deal registration, deeper discounts on products and services associate with approved deal registration. We have dedicated field demand generation activities that are available for partners to help them as well as reduced prices for demo equipment.

Q: How are you demonstrating that you are listening to partners and acting on their feedback?

A: I think the ultimate evidence of listening to and acting on partner feedback is PartnerDirect. We built this program on partner feedback. Based on feedback from thousands of solution providers, we developed new features for channel partners including a partner portal—www.dell.com/partner—partner logos and marketing materials, 100-percent dedicated sales and customer care, certification paths and training, credit options, and deal registration serviced by Salesforce.com partner relationship management tool. Going forward, our commitment is to continue to listen and make changes as needed to meet the needs of our partners.

Q: Greg, do you have any closing thoughts you would like to share with our Channel Community?

A: We’ve taken the first steps on what promises to be an exciting journey. Step-by-step, we are building a relationship with the channel. We are committed to listening to our partners and evolving our program and benefits based on their feedback. Success will take time, and we appreciate the support we have received from the channel thus far. I’m proud of what we have accomplished to date and look forward to continuing to build a world-class partner program.